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Is the box on line 7 checked?
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No the box by 7. is not checked. Does'nt the program take all entered information into consideration and complete the forms automatically? 8863 is showing a refundable AOC on line 8 and nonrefundable AOC on line 9. My confusion is because the AOC instructions on the IRS website state:
you do not qualify for a refundable credit if items 1 (a, b, or c), 2, and 3 below apply to you.
1) You were:
a. Under age 18 at the end of the year, or
b. Age 18 at the end of the year and your earned income was less than one-half of your support, or
c. Over age 18 and under age 24 at the end of the year and a full-time student and your earned income was less than one-half of your support.
2) At least one of your parents was alive at the end of the year.
3) You are filing a return as single, head of household, qualifying widow(er), or married filing separately for the year.
TP is 21 supports self, filing as single, has a living parent. Does TP qualify for partial refundable?
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Looks like TP does not meet Line 1 requirement, unless your statement about TP supporting self does include earned income. Since all the conditions need to be met then the TP should receive the credit.
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On the very bottom of the 8863, how did you answer those three questions?
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all yes. If you get a chance look at line 24 of the Paid Preparers Due Diligence Worksheet, says if you answer NO to filing a joint return TP does not qualify for refundable AOTC.
Talked to a ProSeries tax consultant at Intuit today and he decided TP qualifies. I still feel funny about 24.
Thank you for your time.
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@Young-TP wrote:
all yes.
Question #2 asks if the Earned Income is over 1/2 of their support. Is that the true? If so, they DO qualify for the Refundable credit (notice 1c in your comment above).
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